Jan. 4 (Bloomberg) -- Former U.S. Senator Rick Santorum of
Pennsylvania and former Massachusetts Governor Mitt Romney were
running a close race for first place in Iowa’s Republican
presidential nominating caucuses.

Santorum and Romney were separated by just dozens of votes
as counting neared an end early today, with U.S. Representative
Ron Paul of Texas finishing a close third.

Santorum claimed 24.6 percent of the vote, Romney 24.5
percent and Paul 21.1 percent, according to the Associated
Press, with 99 percent of the precincts reporting.

Because of the closeness of the contest, all three would
claim their own strengths as they carried their contest to New
Hampshire’s primary election on Jan. 10.

“Thank you so much Iowa,” Santorum told supporters, as
final votes were being counted. “By standing up and not
compromising, by standing up and being bold and leading, leading
with that burden and responsibility you have to be first, you
have taken the first step of taking back this country.”

Romney, in comments to supporters in Iowa early today,
reflected the closeness of the vote in offering congratulations
to Santorum and Paul for their showings.

“We don’t know what the final vote tally is going to be,
but congratulations to Rick Santorum. This has been a great
victory for him,” Romney said. “We also feel it’s been a great
victory for us here.”

“Ron Paul has had a great night,” he continued. “All
three of us will be campaigning very hard to make sure that we
restore the heart and soul of the entire nation.”

‘Three Winners’

There were “ essentially three winners,” Paul told
supporters late last night in Iowa. “We’re going to go on. This
momentum is going to continue and this movement is going to
continue.”

The top trio were followed, in order, by former U.S. House
Speaker Newt Gingrich with 13 percent, Texas Governor Rick Perry
with 10 percent and U.S. Representative Michele Bachmann of
Minnesota with 5 percent.

Perry told supporters in Iowa that he is returning to his
home state today to reassess the future of his campaign for
president. Gingrich and Bachmann pledged to continue their
quests.

New Hampshire Next

The six Republicans competing in Iowa completed last-minute
campaign stops and appearances on local and national television
and radio as the focus of the party’s contest would shift to New
Hampshire’s primary voting Jan. 10.

Romney’s campaign said in a news release that it plans to
start running television ads in Florida, joining those already
airing in Iowa, New Hampshire and South Carolina. It was meant
as a show of strength that he can afford to advertise in the
first four states to vote in the nominating contest.

Romney plans to head to New Hampshire today and South
Carolina later in the week. New Hampshire’s primary is followed
by South Carolina’s on Jan. 21, Florida’s Jan. 31.

Romney has consistently led, usually by large margins, in
polls of likely voters in the New Hampshire primary. No
Republican who has won both Iowa and New Hampshire has failed to
become the party’s nominee.

Gingrich, in an interview on CBS yesterday, said “yes”
when asked if he was calling Romney a liar in how he talks to
voters on matters as varied as fundraising and policy positions.

‘Ought to be Candid’

“He ought to be candid; I don’t think he’s being candid,”
the former U.S. House speaker said. “Do you really want a
Massachusetts moderate who won’t level with you to run against
Barack Obama, who frankly will just tear him apart?”

Responding on Fox, Romney shrugged off the attack.

“I understand Newt must be very angry and I don’t exactly
understand why, but, look, I wish him well,” he said. “It’s a
long road ahead. He’s a good guy.”

Looking ahead to the general election, “President Obama is
in much better shape today than he was about six months ago,”
David Gergen, director of Harvard University’s Center for Public
Leadership in Cambridge, Massachusetts, said in an interview on
Bloomberg Radio’s “Bloomberg Surveillance.”

Although that doesn’t “mean he is not vulnerable, he is,”
Gergen said, adding that the infighting among Republicans has
benefitted the incumbent by making him “look a little more
presidential.”

“The Republicans need to get a clear front-runner and
someone who’s going to be anointed fairly soon if they hope to
beat Obama,” Gergen said.

‘Tsunami of Negativity’

On CNN, Gingrich blamed his drop in polls on a “tsunami of
negativity” created by millions of dollars in advertising
against him. The ads have been paid for by a political action
committee backing Romney, as well as by Paul’s campaign.

Romney said Gingrich has had “just as much difficulty” in
polls in New Hampshire, where negative advertising hasn’t yet
become prominent. He also said he is ready for the more
aggressive campaign approach Gingrich has promised.

“If the speaker decides to come after me, why, that’s part
of the process,” Romney said on Fox. “If I can’t handle this
kind of attack, why, how in the world would I handle the attack
that’s going to come from President Obama?”

Romney’s Closing

Romney, 64, made his final Iowa pitch in a Des Moines
theater, before a few dozen voters, more than 40 television
cameras and a crush of media. Ignoring his Republican rivals, he
escalated his attacks against Obama.

“He went on the ‘Today Show’ shortly after being
inaugurated and said that, if he’s not able to turn around the
economy in three years, he’d be looking at a one-term
proposition,” Romney said. “I’m here to collect. He’s out.”

Romney faces a growing challenge from Santorum, 53.

Santorum is urging Republicans not to settle for someone
who doesn’t share their beliefs on such issues as ending
abortions and cutting government spending just because they
think that person can beat Obama this year.

“Ten days ago, the polls said I was going to finish
last,” he told a crowd gathered yesterday in the lobby of a
hotel in Perry, Iowa. “Polls change; convictions shouldn’t. And
that’s what I bring to the equation.”

Republican voters have spent much of the past year
searching for a more fiscally and socially conservative
alternative to Romney, who has been unable to break a ceiling of
roughly 25 percent support in most surveys. Yet after a campaign
characterized by the rise and fall of several challengers, none
has kept a lead over him.